What is the coupon rate of a two-year,$10,000 bond with semi-annual coupons and a price of $9543.45,if it has a yield to maturity of 6.8%?

Question

Quizplus · Accepted Answer

The correct answer is A because the coupon rate is the annual coupon payment divided by the face value of the bond. In this case, the annual coupon payment is $10,000 * 6.8% / 2 = $340, and the face value of the bond is $10,000, so the coupon rate is $340 / $10,000 = 4.32%.

What Is the Coupon Rate of a Two-Year,$10,000 Bond with Semi-Annual